Cultural identity is a significant issue in Europe, where increasing diversity has raised questions about the coexistence of European and Islamic cultural identities. A growing Muslim population has given way to a new concept of "European Islam" — an effort to synthesize Islamic principles with European realities, while respecting essential tenets of Islam. The Main Research Questions and Objectives: This study tries to examine whether "European Islam" is accepted by Muslims both within and outside Europe, the role of external Islamic institutions in integrating Muslim populations, and how divisive issues such hijab, LGBTQ+ rights, and education affect integration. The study aims to explore how Muslim identity integrates and merges with European identity? Main themes 1- Integration in Europe: Integration is different from assimilation and is preferable because it truly means coexistence rather than the erasure of differences. Muslims face not only legal, social and cultural struggles, but also violence and clashes of norms. 2- The role of Islamic institutions: Religious and civic assistance to Muslims is provided outside Europe, but institutions working towards a "European Islam" find it difficult to deal with the challenges of diluting core Islamic values. Such partnerships between external institutions and European Muslim communities could promote understanding. 3- European Islam: The concept refers to an Islam in line with European values; but its development should take place primarily among scholars in Europe, and it requires cultural and religious authenticity. Findings and recommendations: For harmony to prevail, Europeans must agree to accept Islamic values as part of their cultural diversity - and Muslims must please European sensibilities by working towards a phenomenon that creates a balance between Islamic values and European culture.